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Exit Planning Insights
Famed Investor: References to EBITDA make us shudder …
November 21, 2010 / in Business Strategy, Exit Planning, Sell a Business / by Al Statz
… does management think the tooth fairy pays for capital expenditures? Article Published December 6, 2010 — North Bay Business Journal This title is a quote from Warren Buffett’s letter to shareholders in Berkshire Hathaway’s 2000 annual report. EBITDA (earnings before interest, taxes, depreciation and amortization) is a good financial metric to use in analyzing, comparing and valuing companies, but, as business owners and investors, we need to understand its limitations. EBITDA is one of several …
Five Phases of the Business Sale Process
September 21, 2010 / in Exit Planning, Sell a Business / by Al Statz
Article originally published on August 21, 2010 — North Bay Business Journal Remember the story about the chicken and pig that walk past a diner advertising “bacon and eggs” for breakfast? The chicken enthusiastically endorses the menu. The pig replies, “For you it’s all in a day’s work. For me it’s total commitment!” Most company owners already understand that selling a business on their terms requires commitment to a cohesive process. Others try and fail …